Maybe I just don’t get it.

Maybe I just couldn’t understand why a pair of jeans made in Thailand may be better than another pair of jeans made in Thailand.  (To be fair, Diesel jeans are made only in Italy, Tunisia, or Morocco — with the most being produced in Italy).

The thing is, although I may think of it as a waste of money, it really is a sense of perspective and value.

There are MANY denim fans out there.  They value a well made pair of denim, that’s well-designed, fashionable, long lasting; and well, many other factors that I probably wouldn’t be able to list.

I took a shot of this pair of jeans earlier this spring while in Rome (during the whole volcano-making-Europeans-life-miserable moment), and I was slightly giddy with excitement as I envision the post I’ll write up, trashing the ridiculously priced jeans and the satisfaction I’ll get when my readers confirm my perspective, and we all pat ourselves on the back and think about how wise we are with our spending.

The thing is, how we spend our money is a very personal and subjective thing.  Though I’m a fairly frugal guy, I’ll often do incredibly unpractical things (such as impromptu travel with airfare that makes me spit blood).  And in these moments where the spending makes absolutely no sense to another person, it’ll make perfect sense to me.

Although I’ll probably never understand the concept of a pair of jeans that cost more than $20 (and I still hope someone can explain it to me), what I do understand is that I’m still a firm believer in spending whatever the hell you want — as long as you’re not bankrupting yourself or your future.

Related Post:

• $200+ Jeans

As I uttered the line above to my friend, her eyes widen in disbelief.

“What do you mean you don’t need money?”

“Well, uh, you know,” I stammered, suddenly realized how stupid I sounded. “I make an okay amount of money on the side, I don’t think I really need a full time job right now.”

She shook her head in utter annoyance.

It’s been about an hour since we started the discussion about how I can at times be a flake, never committing 100% to school or work.

“You need to commit to one or the other,” the infinitely more matured friend told me. “You should just get a full-time job right now and better your working habits.”

Somewhere along the conversation, I clamor out the now forever brilliant line.

“I don’t need to get a job. I don’t need the money!”

In retrospect, this was probably another moment where I showcased my occasional twisted value system to my friend.

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If you have a Chase Freedom credit card (whether it’s a VISA or MasterCard), you’ve probably got a similar mailing in your mail box.  As you can tell above, I have too many Chase Freedom cards (although some of them are duplicate ones, I have a strange habit of keeping credit cards that are long-since expired).

Before you start thinking I went crazy with the credit card sign-ups, Chase basically converted all my credit cards to their “Freedom” lineup through out the years, as they consolidated their credit card program under their flagship card product and revamp their reward programs to the “Ultimate Reward” structure.

This is just a friendly reminder to anyone that may also have had their Chase credit card converted to a Chase Freedom card.  For the summer of 2010, you’ll get 5% cash back on travel related purchases, which in fact is a pretty sweet deal.

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A trip from San Diego to Indianapolis.

As you’re about to book your flight, you stare at the computer screen, wondering what’s the best choice.

You quickly searched Southwest, but the time table and seats available just didn’t match up to the meeting’s schedule.

You could fly American, as you actually managed to store up some mileage through the years.  Despite the fact that you prefer other airlines, you’ve stuck with American, because loyalty’s gotta mean something, right?

With a quick check, those mileage are currently meaningless as there are no reward seats available to claim.

The problem is that you’re now running on a much tighter budget.  Ever since the recession, business hasn’t been going so well, and you can barely afford this trip out to the mid-west.  But you have to get to Indianapolis, as sealing this deal ensures your business’ survival, and the 6 life-long employees that your business employs.

So despite your better judgement, you booked the American Airline flight.

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It’s been awhile since I’ve written a fun post (or any post for that matter). So let’s take a look at some of the weird stuff you can buy on Amazon.com. Quick note: if you click through, many of these have fairly funny corresponding “customer images,” and ridiculously funny “reviews” by users.

Uranium Ore – $29.95

Always handy to have around, just in case you’re all out of juice in your Delorean-based time machine.  Of course, in actuality this radioactive sample of uranium ore is meant to be used in science labs, for testing Geiger counters and uh, other sciency-thingies (it’s been awhile since I’ve been in a lab-based course).

Amazon review of note:

3 out of 5 star.  Great product, poor packaging.

I purchased this product 4.47 billion years ago and when I opened it today, it was half empty.

UFO-01 Detector – $149.95

When the tinfoil hats just aren’t enough to deter and preempt UFO invasions, you’ll need, the 01 detector!  Made of overpriced hardware found at Radio Shack, this cutting-edge detector will not only emit a flashing LED but will also beep when electromagnetic and magnetic disturbances are detected.  With a low price of $149.95, what more can you ask for?  (Tinfoil hats and probing prevention plugs not included).

Amazon review of note:

1 out of 5 stars. Been abducted twice!!

After my first abduction I sought out to arm myself with something that would prevent this from happening to me again. Alas, the UFO Detector.

Since then my microwave, TV, radio, and cellphone have been causing the device to alarm several times, sending me in a state of panic where I’d hide under my bed for days. Next time it went off it was no false alarm. And I was, again, on board an alien vessle with probes hanging from every opening of my body.

I’d guess that for this “Detector” to work you’d need to be in an environment free from all electrical interferences. Above all, I DO NOT recommend this product.

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Anyone that has been denied credit will remember the added-on fine print at the end of the denial letter telling you that you can receive a free credit report from a specific credit reporting agency.  Sometimes this will require you to mail in a written response to request the free credit report, sometimes it will be as simple as logging on to the reporting agency’s website and fill in a few information.

While it’s little solace to being denied credit (let’s face it, rejection blows), Federal law dictates that you should be given clear reason as to why you’ve been denied, and free access to your credit report so you better understand your credit history.

One problem in the previous solution is that by providing consumer with only their credit report, many people couldn’t make heads or tails on where they stand in terms of credit worthiness.  Unless you’ve read up on your credit report know-hows, it can be at times difficult to distinguish what’s positive or negative — if any — in your list of credit history.

Hot on the heels of numerous financial regulation reform and amendments, Senator Mark Udall of Colorado introduced the Fair Access to Credit Scores Act as an amendment to the hotly debated Wall Street Accountability legislation.  This amendment, which was approved by a voice vote by the Senate on Monday, will allow consumers to receive a free credit score whenever the score has negatively impacted the lending/approving decision process.

Here’s what you can expect if the amendment becomes part of law:

• If you’re denied credit or approved for a more disadvantaged rate, then you’ll have free access to your credit score.
• The credit score you’ll have access to is the specific score that impacted you in the decision making process, not some random score from an unknown company or credit reporting bureau, nor would it be a range of score.  Since most lenders are still using FICO scores, the leading credit scoring model, that means it would most likely be the credit score you’ll receive and not some “FAKO” score.
• No maximum amount or limit to the amount of scores you can get for free.  If you’re denied credit by lenders fifteen times, you’ll get fifteen scores. Though one prudent move may be to closely examine why your credit isn’t up to par before you apply for further loans.
• If credit score was one of the many factors in denying a potential employment, you will also receive a free credit score.  You should note however that credit report is but one of many hiring factors for many employers.

Despite the fact that FIA (formerly MBNA, now owned by Bank of America), told me to bend over as they slashed my credit limit on my Schwab credit card, I still prefer to use the Schwab credit card as my primary card.  It’s just too hard to ignore the 2% cash back on any purchase, and especially the absolutely zilch foreign transaction fee when you use the card while traveling abroad.

While in Italy last month, I extensively used this credit card along with my Schwab debit card as my traveling pals and I roam around tourist traps in a decisively awesome country:

As you can see above, had the Schwab credit card emulated other Visa, MasterCard, and American Express credit card’s usual 3% foreign transaction fee,  my traveling cost would have went up by an additional $21 or so dollars.  Not a whole lot of money in the grand scheme of things, but that’s still three-and-a-quarter-less margherita pizza I’d be able to eat.

And that, my friends, is what personal finance should truly be about: how many slices of pizza you may be missing out on.

Surprise! Learning is Easier When You’re Having Fun

Many of the best lessons in life are learned as a child, while having fun. It’s why we could always memorize lyrics to our favorite songs with ease but struggled mightily with the periodic table in science class.

Do you want to teach your young kids about budgeting and making sound fiscal decisions? Minimize the spreadsheets and play shopkeeper.

It’s important to teach kids about the value of money, not just what you can do with it, but that you must also make choices about how to wisely use what you’ve got. When I play store with my daughters, I see that it helps them prioritize and begin thinking about the consequences of foolish spending. That’s right — I dish out my best financial decision-making assignments surrounded by picture books, fancy shoes and feather boas.

Despite the volume of stuff in their toy chest, I strive to instill in my 6-year old and her nearly-3-year old sister an understanding that you cannot have it all. There is, after all, a finite amount of money most of us have at any given moment (no, Capital One, that was not an invitation to begin soliciting my children about the joys of revolving debt; credit cards and borrowing discussions are intentionally being saved for when they’re a tad older — thank you very much).

So, I set up an elaborate pretend toy store — books, necklaces, tutus, plush snuggle friends, I sell it all! Then, I give my daughters some cash and role-play through different situations. During one trip through my toy Mecca, they need to buy birthday gifts for family members. Another visit is spent shopping for something fun for themselves. Either way, they have to ask how much each item costs and decide if they have enough or if they have to come back after saving up a little longer. Sometimes, instead of yet another stuffed animal, they’ll opt to hold onto some of their dollars to use at Dad’s fictional ice-cream shop – because that’s important too, from time to time!

Real Impact From Fun Lessons

These lessons have yielded interesting real-life results. When my oldest gal needed a pillow and blanket for school, she had a choice to make. The first pillow she picked, she adored. It cost $16. There was another, just-as-cool pillow on sale for $8. She had a firm $15-$20 budget, which she knew going into the store. If she selected the cheaper pillow, there was a very comfy matching blanket she could afford, also on sale for $8. If she went with the pricier one, her old blanket would be accompanying her to school. The choice was hers, and hers alone. She ended up walking into her 1st day of kindergarten with a crisp new pillow and blanket set.

Playing store is one of my girls’ all-time favorite games. I truly believe it’s one of the reasons they rarely ever whine for things when we shop together. After all, they know what it’s like to be short some coin, thanks to shopping in our own living room.

Do you have your own tips and activities you engage with your children to teach them about money management? Feel free to share.

photo credit: tudy